dhl fedex merger

600 exempt level DHL US employees were laid off during the first quarter, mostly front line Sales folks, and also lower level headquarters employees at DHL's Plantation Florida site.

During March and April, following the February layoffs, and DPWN CEO Dr. Klaus Zumwinkel's arrest, DHL VP's and Directors here in the US, were given the task of more attrition, through 'increased accountability'. Visiting field locations were common, with the communication of "I'm here to help", but in fact doing the exact opposite once they left. Dedicated field managers routinely worked 15 hour days. Fear was the motivating factor for these managers, as public humiliation and threats, were the flavor, with targets changing every week.

Attrition was definitely being effected by mental and emotional manipulations of upper management in field operations. Long time legacy DHL supervisors resigned. Dozens of station managers were fired or forced into resignations. Numerous special project managers, auditors, and even directors have disappeared since March also.

Megalomania was the norm, not the exception, and continues even worse as upcoming the layoff announcements, I mean financial solutions loom large, as Frank Appel brings out the the financial hatchet on US DHL, which DPWN shareholders have demanded.

Last Friday it became known that the layoffs are not only going to be with DHL Express, but could spread to money making US DHL entities such as Global Forwarding/Exel. MRI International has been asked if they were interested in become the regional recruiting entity for Exel we understand. Logical outsourcing, which the news story this morning said would be a good possibility for all US express deliveries. (See previous post).

"I am doing everything I can, to keep everyone's job's safe" is what station management is being told their superiors.

"I am committed to delivering profits in the US, not losses", is what Frank Appel is telling DPWN his shareholders. That is what the institutional investors is demanding. Who do you believe? The answer is easy.

Deutsche Post - Raising Dividend, Raising Wages in Europe, and again Complaining About Unprofitable US business of DHL EXPRESS

"Deutsche Post said Ken Allen will take over as the chief of the DHL Express unit's U.S. operations as the company tries to turn the unprofitable division around. Allen will replace Hans Hickler, CEO Frank Appel said. "U.S. express business remains unprofitable and thus not satisfactory'', Appel said. The company is reviewing all options for the unit, though a pullout from the U.S. market is "not an option''. The stake in Postbank "should not be sold hastily or below value'', Appel reiterated, adding that Deutsche Post is in a "phase of consultation'' on the matter." Hickler gone, now a special project manager (not good for Hans) working for Appel. Nothing known about Allan's perception of the FedEx Ground genius's in charge at Plantation, such as John Cameron. Cameron's people fill all kinds of upper level positions throughout DHL Field and Hub operations. One guess is that Cameron is just watering the garden for the FedEx-DHL tie up next week.... Or possibly, Ken Allan coming in, its fair to say, would make the point that Cameron, Carl Rodriquez, and Steve White (already quit DHL) have been abject financial failures since they've taken charge.

"In addition, Deutsche Post expects to exceed a target of generating EUR 1bn from the sale of real estate by 2009, Appel said. He also reiterated the company's outlook this year and in 2009 for EBIT, excluding one-time gains or costs, and the pretax profit forecast for 2008. Group EBIT, excluding one-time gains or costs, will rise to about EUR 4.2bn this year and EUR 4.7bn in 2009 from EUR 3.76bn in 2007, Appel said. Pretax profit is still forecast to total about EUR 3.2bn this year." Appel is not going to take a financial hit on behalf of ANYONE. He has got to be frosted about having to SELL real estate, and Postbank did not do badly during the US mortgage crisis either, unlike their American counterparts. Appel is projecting a 25% increase in EBIT. How can he do that with the disaster that is DHL US?

"Furthermore, shareholders approved a proposal to increase the 2007 dividend by 20% to EUR 0.90 a share. Deutsche Post "will stick to our dividend policy and allow our shareholders to participate in the positive business performance", Appel said. Moreover, Deutsche Post said on the 30th of April that it will raise wages for 130,000 employees, averting a strike that would have brought German mail delivery to a halt. The company and the Ver.di labor union agreed to a 4% pay increase effective Nov. 1 and another 3% raise starting in December 2009. The wage agreement will boost personnel costs in 2008 by EUR 50m compared with 2007, Appel said yesterday." US bargaining unit members probably want to SEE their pay increases too. Pffft. Appel is upping the dividend 20% - that money has to come from somewhere.... Hmm.

Financial crisis, U.S. Express hurt Deutsche Post results

By James Regan

FRANKFURT (Reuters) - First-quarter operating profit at Deutsche Post (DPWGn.DE: Quote, Profile, Research) fell a worse-than-expected 15 percent as the global financial crisis hit results at Postbank (DPBGn.DE: Quote, Profile, Research) and its U.S. express delivery business disappointed.

Earnings before interest and tax (EBIT) slumped to 851 million euros ($1.32 billion) from 998 million a year ago, Deutsche Post said. The average forecast in a Reuters poll of 18 analysts was for quarterly EBIT of 930 million euros.

Operating profit at the German mail and logistics group's DHL Express division fell almost a third to 21 million euros, pulled down by another quarter of losses in the United States.

The quarter also had two fewer working days than a year ago, Post said in a statement on Wednesday.

Underlying EBIT before non-recurring effects rose 6.4 percent to 1.03 billion euros, Post added.

"Given the working day effect and the faltering U.S. economy, business was very satisfactory in the first quarter," Chief Financial Officer John Allan said.

The company reiterated that it expects EBIT before non-recurring effects of around 4.2 billion euros for 2008 and pretax profit of around 3.2 billion. The company was also still aiming for EBIT of 4.7 billion euros in 2009.

Deutsche Post's shares fell 0.8 percent to 20.20 euros by 0933 GMT, compared with a 0.1 percent easier German blue-chip DAX index .GDAXI.

The German company trades at less than 12 times estimated full-year earnings per share, a clear discount to rivals United Parcel Service Inc (UPS.N: Quote, Profile, Research) at more than 17 times and FedEx Corp (FDX.N: Quote, Profile, Research) with a multiple of almost 15, according to Reuters data.

"Much more important for the share price in the mid term will be the announcement of an approach to tackle the problems in the U.S. Express business," DZ Bank analyst Johannes Braun said in a note to clients.

Deutsche Post is battling to stem losses at DHL Express in the United States as the economy weakens and in the face of tough competition from dominant domestic players FedEx and UPS.

Deutsche Post said on Wednesday that its supervisory board planned to meet on Express Americas on May 28.

. Finance chief Allan told a conference call he was very comfortable with the plan he was going to unveil and said it would improve U.S. performance very significantly. The business continued to be disappointing in the first quarter, he said

POSTBANK

Investors are also awaiting news on the company's plans for its Deutsche Postbank retail bank, which has effectively been put up for sale and has attracted strong interest from several rivals. Commerzbank (CBKG.DE: Quote, Profile, Research) and Deutsche Bank (DBKGn.DE: Quote, Profile, Research) are among those interested in buying it.

Allan said on Wednesday Deutsche Post was still considering the best way forward for the bank, but that there were no conclusions yet. Post could afford to take time to reach a decision, and Postbank was performing well, he said.

Postbank's reported EBIT dropped by 22 percent to 190 million euros in the first quarter due to turbulence in the financial markets, which led to writedowns of 174 million euros.

Deutsche Post reported an 18 percent drop in quarterly group net income to 407 million euros on sales up 1.8 percent to 15.7 billion. The poll showed analysts on average expected net income of 456 million euros on sales of 15.98 billion.

(editing by Elizabeth Fullerton)

© Thomson Reuters 2008 All rights reserved

Deutsche Post up on talk of FedEx interest: traders
Mon Apr 28, 2008 7:15am EDT

FRANKFURT (Reuters) - Shares in Deutsche Post (DPWGn.DE: Quote, Profile, Research) rose on Monday as traders cited market talk that U.S. package delivery company FedEx Corp (FDX.N: Quote, Profile, Research) was interested in buying a stake in the German mail and logistics group.

"There are rumors that FedEx wants to buy a 14-percent stake in Deutsche Post," one trader said.

Deutsche Post had no immediate comment.

Deutsche Post shares were up 1.5 percent at 20.40 euro by 6:34 a.m. EDT, while Germany's top-30 index .GDAXI was up 0.9 percent.

(Reporting by Eva Kuehnen, Kirsti Knolle and Sitaraman Shankar in London)

© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interest

4/29/08 - from Thomson, London, England

Earnings annoucement and news of how DPWN will downsize the DHL United States overnight delivery and ground delivery network, will be delayed until the second half of May. This may come as a surprise to some.

But Thomson reports the reason, is that John Allan (pictured) and Frank Appel, DPWN CEO and CFO, need more time at the overnight negotiating table.

Potential partners were not named by Thomson, but DHL and FedEX, or DHL and UPS, are obvious match's. Each company will drive and extremely hard bargain, UPS or Fedex. It is said Appel and Allan need two more weeks to 'choose' their new United States 'partner'.

After 'partnering' with ABX Air and ASTAR for so many years in the overnight delivery business here in America, where does that leave those two respected companies? It leaves them in the waste management business with the Soprano family.

The independent contractor model has suffered mightily, used by Airborne Express, then purchased by a money losing DHL US in 2004. The lack of employee accountability with contract drivers made it a losing proposition, right from the start. So for an ongoing 3.5 years, DPWN shareholders have seen billions go down the US drain, figuratively and descriptively speaking...

Deutsche Post 1Q net falls 18 percent

By GEORGE FREY
MORE FROM BUSINESSWEEK
FRANKFURT, Germany

Mail and express delivery company Deutsche Post AG saw first quarter net profit fall 18 percent as its Postbank unit lost earnings tied to the financial markets crisis, the German mail and logistics company said Wednesday.

Bonn-based Deutsche Post said net profit for the quarter from January through March fell to euro407 million (US$630.85 million) from euro499 million in the year ago quarter.

First quarter sales were up 2 percent to euro15.75 billion (US$24.41 billion) compared with euro15.47 billion in the first quarter a year ago.

The company said it is "aware of uncertainties in the world economic development," but that "at this point in time, the group has no reason to change its full-year earnings forecast of around euro4.2 billion (US$6.51 billion) in (earnings before interest and taxes) before nonrecurring effects, and around euro3.2 billion (US$4.96 billion) in pretax profit."

Given the fact that the first quarter in 2008 had two fewer working days compared to the first quarter of 2007, and in view of the faltering U.S. economy, "business was very satisfactory in the first quarter," said John Allan, the company's chief financial officer. "Both the express and the logistics business grew organically and we made good progress in our roadmap to value capital markets program."

At consumer banking subsidiary Postbank, EBIT, or earnings before interest and taxes, fell 22 percent to euro190 million (US$294.5 million) due to "turbulence in the financial markets." Meanwhile EBIT before those nonrecurring effects increased 36 percent to euro364 million (US$564.2 million).

Deutsche Post said the full liberalization of the German postal market at the start of this year had a limited effect on the company's mail business. So far, the company said it had gained more new postal customers than it has lost.

The company said its express division, which includes DHL, saw growth in all regions except in the U.S., where DHL has been losing money for years. Earlier this month, Deutsche Post said a retreat from the U.S. market was out of the question and named Ken Allen as the new head of its U.S. operations for DHL.

The 52-year-old Allen has already overseen DHL's operations in Africa, the Middle East and eastern Europe.

Deutsche Post shares were trading up 0.30 percent at euro20.34 (US$31.53) while Postbank shares were trading up 0.35 percent at euro58.17 ($90,16) in Frankfurt morning trading.

------

On the Net:

http://www.deutschepost.com

http://www.deutschepostbank.com

Deutsche Post up on talk of FedEx interest: traders
Mon Apr 28, 2008 7:15am EDT

FRANKFURT (Reuters) - Shares in Deutsche Post (DPWGn.DE: Quote, Profile, Research) rose on Monday as traders cited market talk that U.S. package delivery company FedEx Corp (FDX.N: Quote, Profile, Research) was interested in buying a stake in the German mail and logistics group.

"There are rumors that FedEx wants to buy a 14-percent stake in Deutsche Post," one trader said.

Deutsche Post had no immediate comment.

Deutsche Post shares were up 1.5 percent at 20.40 euro by 6:34 a.m. EDT, while Germany's top-30 index .GDAXI was up 0.9 percent.

(Reporting by Eva Kuehnen, Kirsti Knolle and Sitaraman Shankar in London)

© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.

ABX Golden Parachutes?

Why, you ask, would this happen suddenly. It's the end of April, that's why, and in two weeks DPWN is going announce their plans to cut back on annual loss's in the US during 2004 - 2007, of over $(a VERY large amount).

Joe Hete and friends must be going someplace.

The stock is only worth $2.63, trading near a 52 week low. It's like Carl Donaway has returned, and has written his own severance check. Tell me I a wrong. Joe and friends are headed out.

Next coincidental news, is that Fedex has placed orders for 757 cargo freighters. First time ever. See the note and picture below from Flickr.

"The very FIRST 757 for FedEx EVER! What a catch. It's now in Mobile, Alabama getting retrofitted for cargo service. It will enter revenue service sometime in 2008 for FedEx. "

What is DHL's main aircraft type outside the United States? 50% of the fleet are Boeing 757's. Coincidence?

Last week, Thomson News service, out of Great Britain published this unbelievable news. Unbelievable is losing over (a VERY large amount) a year in the domestic US... please read:

FRANKFURT, Apr. 15, 2008 (Thomson Financial delivered by Newstex) -- Talks between Deutsche Post World Net AG. and Fedex (NYSE:FDX) Corp. on a strategic partnership in the U.S. express market have collapsed, Handelsblatt reported.

'Talks with Fedex on a cooperation have fizzled out,' the report quoted Axel Funhoff, analyst at Dutch Bank ING Groep (NYSE:ING) N.V. as saying, attributing his information to sources close to the companies.

Deutsche Post's DHL express operations in the United States have posted unspecified losses since the German mail services company entered the market in 2004.

Chief executive Frank Appel in a recent interview said the company is in talks with potential partners but said Deutsche Post is not dependent on finding a partner.

The report said a spokeswoman for Deutsche Post declined to comment on the matter.

What has "fizzled out" is all news speculating how DPWN is going to end their losses in America. That is what is called a quiet period, if I can put 2+2 together... Frank Appel is a financial wizard, well known as a cost cutter throughout DHL Europe, and he's a young man to be Chairman and CEO of a Fortune 100 World company. Longevity in his position demands increased shareholder value.

Fizzled Out? I don't think so.